how to maintain charts of accounts

CHART OF ACCOUNTS

A chart of account the name of accounts that a company has identified and made available for recording transactions in its journal ledgers.

MAINTAIN CHART OF ACCOUNTS

When we start any new company we have to maintain our chart of accounts because when we were setting up a new company on Peachtree we clicked on BUILD YOUR OWN COMPANY so just because of that we have to maintain our own charts of accounts otherwise we can use chart of accounts of any existing company. To maintain chart of accounts following steps are required which are given bellow;

Step 1;

In first step you open Peachtree software and you have this window on your screen.

Step 2;

If you see on the top of this window you have seen a word MAINTAIN click on this MAINTAIN menu then you have this window on your screen which is below

When you click on maintain menu you have a list below the maintain menu.

Step 3;

In the third step you have to choose the head named CHART OF ACCOUNTS written in the list of maintain menu. When you choose the head chart of accounts you have this window on your screen

Step 4;

After choosing head, Chart of accounts as you that you have the above window on your screen now maintaining chart of accounts start.

In this window you can see a CIRCLE. In this circle you can see that Account ID is written and after this a blank box is in this window it means that you have to write Account ID before this. Account ID is just like a code which every company gives to its chart of accounts for their convenience. Every company have a list of its chart of accounts with their Account ID which is different for all chart of accounts for example 105,  150, 200, 300, 500 etc.

Step 5;

When you enter your account ID in that blank box then you move on to the next step which is Description. Which is about the account that what type of account it is whether it is cash, bills receivables, inventory or any other 

In the above window you can see another circle which is on description you have to write here description of account.

Step 6;

In the 6 step you have to tell about the account type that what of account is which we are maintain.

After  entering account type press ALT S and your chart of account had saved. Repeat all this steps and maintain your all chart of aacounts.

Note;

We can see our saved chart of accounts by clicking on this circled button.

For delete any existing chart of account you have to search that account first. Write account ID, description and account type then click on this DELETE button.

When you click on DELETE button the software wants confirmation from you to delete this account if you want to delete it click on YES and if you don’t click on NO.

If you want to change ID of any account you have to click on CHANGE ID write on the top of this software

Just like the deletion process in this you again have to write account ID, description and account type and click on change ID.

This window appears on your screen enter current account ID and new account ID IN THE CIRCLED PORTION and then click on OK if you want to change the previous ACCOUNT ID.

HOW TO ENTER BEGINNING BALANCES;

To enter beginning balances see this window which is given below

In the above window if you notice this is that window which we use to maintain our chart of accounts. In this window just in front of ACCOUNT TYPE or at the RIGHT SIDE of this window you have seen a BEGINNING BALANCES you have to click the box in front of beginning balances. When you click on it you have this window on your screen which is given below

After clicking on that box you have this window with this new page. This page have different dates here you have to select the date of that balances which you want to enter. We have a trail balance of 1^st January 2010 so it means that these balances are of 31^st December 2009  so from that page you have to select the date of those balances. As you know that we have balances at 1^st January 2010 it means that these balances are of 31^st December 2009 so we you choose date 12/1/09 through 12/31/09 click on this date and press OK.

When you press ok you have the above window on your screen if you can see the circled area you have to enter the balances in that area.

Before entering the beginning balances must check that you have RETAINED EARNINGS account or not. Because this account is compulsory when software makes INCOME STATEMENT it transfer the balance or extra amount to retained earning accounts and if you don’t have this account your income statement will not equal.

To check the retained earnings account you have to click on LOOK UP button and you have all chart of accounts on your screen.

Make sure that you have retained earnings account if you don’t have this account you have to go back and make all accounts again.

The process of maintaing chart of accounts has completed